Cannabidiol, also known as “CBD”, has become a household medical name, with increasing numbers of people hopping on the leafy green bandwagon. The CBD chemical itself is derived from the cannabis sativa plant, and may have the potential to ease/manage certain medical conditions. Further scientific studies, however, are required to more accurately narrow down the benefits and risks of CBD use.
Conditions that may allegedly be treated with medically-prescribed CBD include:
- Epilepsy
- Multiple sclerosis
- Type 2 diabetes
- Bowel disease
CBD-related products such as oils and even gummies are more so considered “every-day” items that many suggest are effective in managing symptoms of chronic pain, insomnia, anxiety, depression, and even substance abuse. It’s important to note, however, that even CBD oils, while increasing in popularity, require further research to decipher potential side-effects and the exact degree of relief offered.
Many businesses, however, continue to thrive in the market by selling these products online. Finding reputable and trustworthy ways to sell can prove challenging at times; however, the numbers speak for themselves when it comes to CBD-related revenue, especially over the past five years.
Making Money
CBD is exponentially growing in popularity, both from the consumer and business owner perspective. In the United States, in particular, sales are predicted to reach over USD$20billion by 2024. While CBD products are also offered in-store, it is estimated that up to 60% of sales are generated through online channels. Therefore, it isn’t surprising to see companies utilizing this market boom and directing their strategies to the digital world.
Selling online can, however, prove challenging, when considering not only market-competitors and reliable e-commerce platforms, but also the legal requirements that companies must uphold when providing consumers with sensitive and controversial substances.
If you follow the tips below, your business may move one step closer to thriving in the ever-growing world of CBD products:
Tips for Selling Online
1. Legal Requirements
It shouldn’t come as a surprise to learn that selling CBD products online poses various legal challenges. The lack of approval provided by the Food and Drug Administration (FDA) surrounding the sales of CBD products had been a continual struggle for online business owners. The 2018 Farm Bill, however, allowed for hemp plant cultivation and distribution to be legalized.
However, it is crucial to understand your individual state laws regarding the production and sale of CBD products, as they do vary. Ensuring that you adhere to and work in accordance with the correct regulations, while adopting the appropriate licenses, you should be in the clear to start selling online.
2. Choose the Best E-Commerce Solution
Researching and finding a solution that is dependable, tested, and still offers freedom is the ideal situation for new and existing CBD business owners. Some businesses may opt for their own website build; however, others prefer utilizing existing e-commerce platforms. Determining which solutions are best-suited for your selling needs is vital.
Potential e-commerce platforms include:
- Shopify (US): Only allows for the sale of CBD products that are legally derived from the hemp species, not marijuana.
- WooCommerce: Allows for the sale of CBD products as long as you adhere to their specific rules regarding local laws and language use.
- Squarespace: Can you sell CBD on Squarespace? The short answer is, yes. Square, an online payment processor that many Squarespace users utilize, allows for hemp-derived products to be sold.
3. Find a Quality Supplier
If you wish to succeed in selling CBD products online, it’s important to remain transparent and trustworthy. Selling low-quality, illegitimate substances online will not only reduce your customer traffic, but may also land you in legal-strife. Ensuring that your products are top-tier and reputable is key.
4. Marketing
Marketing your products and driving consumers to your online shop is one of the most important steps in selling any product. Ensuring that your marketing strategies are direct and well-executed could mean the difference between a thriving business and a flop. Price drops or regular discount coupons also work to entice the buyers.
Marketing strategies may include:
- Advertising: To harvest a wider scope of potential, you could advertise through various media outlets or face-to-face, such as at CBD industry trade shows.
- Networking
- Affiliate marketing
- Podcast sponsorships
- Seach engine optimization (SEO)
- Brand ambassadors/influencers
5. Inventory and distribution
If your marketing strategies are effective, but your behind-the-scenes business functions aren’t, your chances of success may fade. Ensuring that you have adequate amounts of stock and a reliable way of distributing goods to customers is key.
Final Thoughts
Selling CBD products online can be a daunting and challenging task. However, with the correct marketing tactics, legal adherence, and motivation, your business should be able to thrive and grow alongside CBD’s popularity.